FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.38 and the

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.38 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Portfolio beta

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate And Project Finance Modeling Theory And Practice

Corporate And Project Finance Modeling Theory And Practice

Authors: Edward Bodmer

1st Edition

1118854365, 9781118854365

More Books

Students also viewed these Finance questions

Question

★★★★★
Given that the quantity of ozone in the stratosphere is equivalent to a 3.0-mm-thick layer of ozone on Earth at STP, calculate the number of ozone molecules in the stratosphere and their mass in...

Answered: 1 week ago

Question

★★★★★
=+MARBLE marks up the cost of goods sold by 25%. Both MARBLE and FALLS charge depreciation on a time apportionment basis to net operating expenses. The directors of MARBLE believe that the goodwill...

Answered: 1 week ago

Question

★★★★★
8. Six different explanations were given for why exercise has a positive effect on psychological well-being. Which explanation do you think is most viable and why? Compose your own eclectic theory...

Answered: 1 week ago

Question

★★★★★
In Problem S1-8, if Wiley Publishing is able to assign probabilities of occurrence of 0.23 to unfavorable market conditions, 0.46 for the same market conditions, and 0.31 for favorable market...

Answered: 1 week ago

Question

★★★★★
Using a ticketing system to help track intelligence requirements and requests has several advantages for the intelligence team, other than simply tracking requests; one of those advantages is _ _ _ _...

Answered: 1 week ago

Question

★★★★★
what is Capital asset pricing model? explain what is and how it works. define its objectives: to evaluate, to understand, to analyze. (300 words no plagarisim please)

Answered: 1 week ago

Question

★★★★★
LMP Limited is a company founded by a group of marketing consultants. They had taken advantage of their clients career placement services, and thought they could offer additional supplemental...

Answered: 1 week ago

Question

★★★★★
Nissan Motors accepted an order for 10 units of Urvan Escapade on a job order cost system. Job 3-601 is assigned for this order. The following costs are incurred for the manufacture of the 10 unit:...

Answered: 1 week ago

Question

★★★★★
Can you discuss some aspect of the source that is interesting and why. Be sure to relate your post to some type of workplace hazard and/or method(s) for protecting employees from the hazard...

Answered: 1 week ago

Question

★★★★★
Use the following sections to write an essay on differentiated/decision- making theory in education a. Introduction b. Literature review c. Strengths and weakness d. Conclusion

Answered: 1 week ago

Question

★★★★★
Operating Leverage. Airlines offer an example of an industry in which the degree of operating leverage is fairly high. Why? Taking the public information of the last Annual Report published by an...

Answered: 1 week ago

Question

★★★★★
Since the test for implementing a policy is only applicable to unionized work environments, do you think personal appearance ought to be a prohibited ground in human rights legislation? Why or why...

Answered: 1 week ago

Question

★★★★★
Your best friend has recently been appointed a shop steward of their work unit. You know the friends manager and feel the manager has always been fair in dealing with staff. What advice might you...

Answered: 1 week ago

Question

★★★★★
Sam Wong has decided to file a grievance with the shop steward, alleging that he was not promoted and a more junior (in seniority) employee was. Describe the steps in the grievance process and what...

Answered: 1 week ago

Previous Question Next Question